NCLT Mumbai Orders Liquidation Of Quality Care Dialysis After Multiple Attempts Yield No Resolution Plan

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 21 April 2026 ordered liquidation of Quality Care Dialysis Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, after it received no resolution plan despite repeated attempts during the Corporate Insolvency Resolution Process (CIRP).

A Bench of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati allowed the application that the Resolution Professional, Ms. Sapna Pankaj Chourasia, filed, noting that the Committee of Creditors (CoC) had unanimously decided to liquidate the Corporate Debtor in exercise of its commercial wisdom. It held:

“In view of the foregoing, and having regard to the facts of the case that no Resolution Plan was received despite the publication of Form G on 18.02.2025 and 03.06.2025 and the subsequent circulation of the Request for Resolution Plan to three Prospective Resolution Applicants on 10.07.2025, without a viable resolution, the CoC has unanimously resolved to liquidate the Corporate Debtor in accordance with Section 33(2) of the Code.”

The CIRP commenced pursuant to a petition filed under Section 9 of the Code by the Operational Creditor, Fresenius Medical Care India Private Limited. The Resolution Professional issued a public announcement inviting claims and constituted the CoC, which comprised a sole operational creditor holding 100% voting share.

The Resolution Professional made multiple attempts to invite resolution plans. She first published Form G on 18 February 2025 and later re-issued it with extended timelines. As no response was received, she initiated a fresh round of Expression of Interest (EOI) in June 2025 and shortlisted three prospective resolution applicants. She circulated the Request for Resolution Plan (RFRP), along with the evaluation matrix and eligibility criteria, to them.

Despite these efforts, none of the shortlisted applicants submitted a resolution plan within the stipulated time. Even after extension of the CIRP period by 90 days, no viable resolution emerged. Consequently, in its 5th meeting held on 26 August 2025, the CoC resolved with 100% voting share to liquidate the Corporate Debtor.

The CoC also approved the appointment of KDRA Insolvency Professionals Private Limited as Liquidator, fixing a fee of Rs.1,00,000 per month plus applicable expenses and taxes. It further recorded that the Liquidator would explore sale of the Corporate Debtor as a going concern.

On examining the record, the Tribunal found substantial compliance with the CIRP Regulations. While noting that no specific estimate of liquidation costs under Regulation 39B was placed on record, it accepted the Resolution Professional's submission that the CoC would bear such costs.

Holding that no resolution plan was received despite multiple opportunities and that the CoC had unanimously resolved for liquidation, the Tribunal concluded that the case warranted liquidation. It accordingly ordered liquidation of the Corporate Debtor, appointed the Liquidator, and directed that the process be conducted in accordance with the Code and applicable regulations.

The Tribunal further declared that a fresh moratorium under Section 33(5) would commence and that the powers of the Board of Directors and key managerial personnel would vest in the Liquidator.

Accordingly, the NCLT allowed the application.